_Mach-waives-financing-condition-for-Transat-acquisition

Mach waives financing condition for Transat acquisition

MONTREAL — Group Mach Inc. has submitted an amended version of its proposal to acquire Transat today, removing conditions related to financing from the Government of Quebec.

The group announced its non-binding agreement with the government, in connection with its formal proposal to acquire all issued and outstanding voting shares of Transat A.T. Inc., at a price of $14.00 cash per share to Transat’s Board of Directors.

This entailed waiving a financing condition and the execution of support and voting agreements with the amended proposal, which only contains the following conditions:

• Transat terminating its current process with Air Canada prior to entering into any definitive acquisition agreement with Air Canada;
• The execution of a confidentiality agreement between Transat and Mach which includes a period of 30 days to complete due diligence and execute a definitive acquisition agreement between Mach and Transat during said period; and
• The receipt of customary regulatory approvals, namely the review of the Amended Proposal by federal competition and transportation authorities (the “Key Regulatory Approvals”).

Of note in regards to Key Regulatory Approvals, Mach, TM Grupo Inmobiliario and their subsidiaries do not carry on any activities in Canada in any of the segments of current activities of Transat. In particular, neither Mach nor TM or any of their subsidiaries operate an airline anywhere in the world. Mach shall preserve all existing operational activities of Transat post-closing of our proposed acquisition of Transat.